Old Project Avalon Forum (ARCHIVE) - View Single Post - Dow and S&P hit 12-year lows ~ GM Warning of Possible Bankruptcy

peaceandlove · 03-05-2009, 11:43 PM

Dow and S&P hit 12-year lows

Thu Mar 5, 2009 5:29pm EST

By Leah Schnurr

Investors worry that GM's collapse would send shock waves through the recession-hit U.S. economy, given that it is a major employer and buyer of supplies from auto parts makers.

NEW YORK (Reuters) - Stocks slid on Thursday with the Dow and S&P falling to 12-year lows as General Motors' warning of possible bankruptcy and concerns about the banking system's fate reinforced investors' reluctance to take on risk.

The previous session's rally proved fleeting as worries about the financial system's health hit bank stocks again and investors focused on the possibility that troubles in the finance arm of widely held General Electric could lead to a debt rating downgrade for the entire company.

GE's stock was down 0.5 percent at $6.66 after falling to its lowest since 1991 a day earlier. Uncertainty about the exposure of U.S. banks to GE remained a significant concern and the S&P financial index fell nearly 10 percent.

Shares of Citigroup, once the world's largest bank by market value, fell as low as 97 cents during the session, trading below $1 for the first time. Anxiety rose over whether the bank can be restored to health or whether it will have to be taken over by the government.

"The loss of confidence is pervasive. There isn't any magic bullet here that's going to save Citi or Bank of America. The only thing that might save them is if the government comes in and sponsors a bankruptcy," said John Schloegel, a vice president of Capital Cities Asset Management in Austin, Texas.

Article continues: http://www.campaignforliberty.com/wire.php?view=3196

03-05-2009, 11:43 PM	#1
peaceandlove Avalon Senior Member Join Date: Sep 2008 Location: Turtle Island Posts: 2,776	Dow and S&P hit 12-year lows ~ GM Warning of Possible Bankruptcy Dow and S&P hit 12-year lows Thu Mar 5, 2009 5:29pm EST By Leah Schnurr *Investors worry that GM's collapse would send shock waves through the recession-hit U.S. economy, given that it is a major employer and buyer of supplies from auto parts makers.* NEW YORK (Reuters) - Stocks slid on Thursday with the Dow and S&P falling to 12-year lows as General Motors' warning of possible bankruptcy and concerns about the banking system's fate reinforced investors' reluctance to take on risk. The previous session's rally proved fleeting as worries about the financial system's health hit bank stocks again and investors focused on the possibility that troubles in the finance arm of widely held General Electric could lead to a debt rating downgrade for the entire company. GE's stock was down 0.5 percent at $6.66 after falling to its lowest since 1991 a day earlier. Uncertainty about the exposure of U.S. banks to GE remained a significant concern and the S&P financial index fell nearly 10 percent. Shares of Citigroup, once the world's largest bank by market value, fell as low as 97 cents during the session, trading below $1 for the first time. Anxiety rose over whether the bank can be restored to health or whether it will have to be taken over by the government. "The loss of confidence is pervasive. There isn't any magic bullet here that's going to save Citi or Bank of America. The only thing that might save them is if the government comes in and sponsors a bankruptcy," said John Schloegel, a vice president of Capital Cities Asset Management in Austin, Texas. Article continues: http://www.campaignforliberty.com/wire.php?view=3196 Last edited by peaceandlove; 03-05-2009 at 11:48 PM.